BASF and ParagonCorp, described as Indonesia's largest personal care company, have signed a non-binding, non-exclusive memorandum of understanding to explore collaboration on science-backed cosmetic innovation. The agreement establishes a framework for joint research and development rather than committing either party to specific products, volumes or deadlines; none of those details were disclosed.
ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business, according to the two companies. The arrangement is meant to combine BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's local understanding of consumers and product development.
The partners said they would use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The scope as described is exploratory, and because the MoU is not exclusive, both companies remain free to pursue other collaborations.
On the terms outlined, BASF would contribute formulation know-how while ParagonCorp would contribute consumer insight — an arrangement that, if it moves beyond exploration, could link an international ingredient supplier with a domestic manufacturer's brand portfolio. Neither company said how much it would invest, which product categories or brands would be involved, or when joint work would begin.
Dr. Chang Wang, vice president of business management for Personal Care in Asia Pacific at BASF, said innovation carries the most meaning when it remains close to consumers, and that pairing science with a deeper understanding of changing expectations could open new possibilities for personal care. Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company — which positions itself as a purpose-led beauty technology business — believes innovation must begin with consumer needs and keep evolving through science-based approaches.
The agreement comes as Indonesia's cosmetics industry gains momentum with local players and the government. In September, the Ministry of Industry reported that the country's cosmetic exports rose 13.7% to US$473.8 million in 2025, up from US$416.8 million the year before. The ministry has stepped up support for small and medium-sized enterprises in personal care, which make up the bulk of the domestic cosmetics industry, to strengthen their competitiveness and open more doors to international markets.
Domestic offerings are expanding too. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described at its launch as Indonesia's first holistic skin longevity clinic.
Regulation is tightening at the same time. Indonesia is rolling out mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label. The government extended the compliance deadline by two years to October 2028, an extension intended to give the halal ecosystem time to prepare and to grant businesses a little more certainty.